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Federalism and Local Politics in Russia

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192 Rostislav Turovskiirepresentative of one of the lead<strong>in</strong>g <strong>Russia</strong>n bus<strong>in</strong>ess groups (Interros,<strong>in</strong>clud<strong>in</strong>g Norilsk Nikel), won the gubernatorial seat <strong>in</strong> 2002, <strong>and</strong> Perm Krai(formerly Perm Oblast), where <strong>in</strong> 2004 local bus<strong>in</strong>essman Chirkunovreplaced his bus<strong>in</strong>ess partner, Trutnev, who won the 2000 election. Butusually <strong>in</strong> wealthy <strong>and</strong> polycentric regions the elites need a governor with nodirect l<strong>in</strong>ks to any particular bus<strong>in</strong>ess who can play the role of arbiter.Regional authorities headed by arbiters often turn out to be more robust; byestablish<strong>in</strong>g l<strong>in</strong>ks with various groups they are more successful <strong>in</strong> resist<strong>in</strong>gattempts by powerful groups to take power under their control. InKrasnoyarsk Krai <strong>and</strong> Perm Oblast the dim<strong>in</strong>ish<strong>in</strong>g credibility <strong>and</strong>/or<strong>in</strong>stability of the previous adm<strong>in</strong>istration paved the way for a more radicalchange of elites to the advantage of some bus<strong>in</strong>ess groups. But such examplesare rare.Paradoxical, bus<strong>in</strong>essmen are more liable to come to power <strong>in</strong> poor <strong>and</strong>underdeveloped regions which depend for their survival on f<strong>in</strong>ancial aid. InKalmykiya the transfer of power <strong>in</strong>to the h<strong>and</strong>s of the young bus<strong>in</strong>essmanIlyumzh<strong>in</strong>ov happened as early as 1993, which was the first case ever <strong>in</strong><strong>Russia</strong>n history. 13 Among regions <strong>in</strong> the central part of <strong>Russia</strong>, the leastdeveloped are Pskov <strong>and</strong> Bryansk oblasts. In these regions <strong>in</strong> 2004 representativesof bus<strong>in</strong>ess elites (Kuznetsov <strong>and</strong> Den<strong>in</strong>) came to power. Theeconomic situation <strong>in</strong> Tver' Oblast was hardly any better, but nonethelessZelen<strong>in</strong>, a well-known Moscow entrepreneur, was elected as Governor <strong>in</strong>2004.Special attention should be given to the northern autonomous okrugswhere the number of governors com<strong>in</strong>g from bus<strong>in</strong>ess groups is especiallyhigh. The remote Koryak, Chukotka, Evenkia <strong>and</strong> Taimyr autonomousokrugs lie <strong>in</strong> extremely <strong>in</strong>hospitable natural <strong>and</strong> climatic zones, <strong>and</strong> lacksuch a strong resource base as Khanty-Mansiysk <strong>and</strong> Yamalo-Nenetsautonomous okrugs, the lead<strong>in</strong>g producers of oil <strong>and</strong> natural gas <strong>in</strong> <strong>Russia</strong>.Each of the above-mentioned districts has promis<strong>in</strong>g deposits of naturalresources, but their exploitation requires huge <strong>in</strong>vestments. In such regionsthe population is scarce <strong>and</strong> the territory is vast. In other words, they arehardly an asset for a bus<strong>in</strong>essman. Nonetheless, bus<strong>in</strong>essmen have beenw<strong>in</strong>n<strong>in</strong>g elected offices <strong>in</strong> these regions as well. One of the most powerful<strong>Russia</strong>n oligarchs, Abramovich, won the 2000 gubernatorial election <strong>in</strong>Chukotka; <strong>in</strong> 2001 Khlopon<strong>in</strong> became governor of Taimyr (he was laterelected governor of Krasnoyarsk Krai, whereas <strong>in</strong> Taimyr a representative ofthe same bus<strong>in</strong>ess group, Budarg<strong>in</strong>, took over as Governor); later theYUKOS manager Zolotarev won <strong>in</strong> Evenkia. F<strong>in</strong>ally, <strong>in</strong> 2005 Kozhemyako,a prom<strong>in</strong>ent fish<strong>in</strong>g tycoon from Primorskiy Krai, became Governor of theKoryak Autonomous Okrug.The rema<strong>in</strong><strong>in</strong>g examples are taken from relatively large but averagelydeveloped regions. In Primorskiy Krai the 2001 gubernatorial electionbrought to power Dar'k<strong>in</strong>, who had bus<strong>in</strong>ess <strong>in</strong>terests <strong>in</strong> fish<strong>in</strong>g <strong>and</strong> agriculture.Primorskiy Krai, <strong>Russia</strong>’s gateway to the Asia-Pacific area, has

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